That might be the message for American private equity giant Platinum Equity, as it considers its next move after the competition watchdog flagged serious concerns about its play for office products supplier OfficeMax Australia.

OfficeMax is a key player in supplying large businesses, as well as federal, local and state governments, and on Thursday the Australian Competition and Consumer Commission raised concerns that the deal could substantially reduce competition.

Platinum has already snapped up the Australian and New Zealand businesses of office products supplier Staples Inc under a deal sealed in March.

If the deal to buy OfficeMax Australia is eventually approved by the ACCC, it would create a mega stationery supplier with a dominant position in the $10.2 billion sector.

IBISWorld estimates government agencies account for about 31.5 per cent of the market, and the business-to-business segment share at 44.9 per cent.

ACCC commissioner Roger Featherston said one reason the earlier Staples deal was approved was because Officeworks was seen as a potential competitor, but that had not yet occurred.

"[At the time] very few concerns were expressed by market participants and the ACCC considered that Officeworks was likely to be a credible competitive threat in the future," he said in a statement. "[But] Officeworks does not appear to have expanded significantly into supplying large customers or to have any intention of doing so."

The ACCC has sought submissions on the new deal before it makes a final decision.

Officeworks chief executive officer Mark Ward declined to comment.

Paul Munkley, OfficeMax Australia's director of marketing and merchandise told Fairfax: "We have nothing to add to the ACCC media release."

Further complicating the picture is a competing bid by to acquire OfficeMax by Complete Office Supplies, which is also under ACCC review. Complete Office Supplies founder Dominique Lyone was overseas and unavailable for comment when contacted by Fairfax.